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Originally Posted by blueraven
i prefer one that gave a tax cut to the childless lower class 'aussie battler' instead of the fat cats...
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Fat Cats, you've gotta be joking surely. Read the article below and tell me if you still think they are fat cats. Ever heard of the brain drain, tax avoidance etc? People only pay what they feel is fair, push to hard and they push back.
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How Taxes Work....
Let's put tax cuts in terms everyone can understand. Suppose that every day,
ten men go out for dinner. The bill for all ten comes to $100. If they paid
their bill the way we pay our taxes, it would go something like this. The
first four men -- the poorest -- would pay nothing; the fifth would pay $1,
the sixth would pay $3, the seventh $7, the eighth $12, the ninth $18, and
the tenth man -- the richest -- would pay $59.
That's what they decided to do. The ten men ate dinner in the restaurant
every day and seemed quite happy with the arrangement -- until one day, the
owner threw them a curve (in tax language a tax cut). "Since you are all
such good customers," he said, "I'm going to reduce the cost of your daily
meal by $20." So now dinner for the ten only cost $80.
The group still wanted to pay their bill the way we pay our taxes. So the
first four men were unaffected. They would still eat for free. But what
about the other six -- the paying customers? How could they divvy up the $20
windfall so that everyone would get his "fair share?"
The six men realized that $20 divided by six is $3.33. But if they
subtracted that from everybody's share, Then the fifth man and The sixth man
would end up being PAID to eat their meal. So the restaurant owner suggested
that it would be fair to reduce each man's bill by roughly the same amount,
and he proceeded to work out the amounts each should pay. And so the fifth
man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth
paid $9, the ninth paid $12, leaving the tenth man with a bill of $52
instead of his earlier $59.
Each of the six was better off than before. And the first four continued to
eat for free. But once outside the restaurant, the men began to compare
their savings. "I only got a do! llar out of the $20," declared the sixth
man, but he, pointing to the tenth. "But he got $7!". "Yeah, that's right,"
exclaimed the fifth man, "I only saved a dollar, too, ........It's unfair
that he got seven times more than me!". That's true!" shouted the seventh
man, why should he get $7 back when I got only $2?" The wealthy get all the
breaks!". Wait a minute," yelled the first four men in unison, "We didn't
get anything at all. The system exploits the poor!" The nine men surrounded
the tenth and beat him up.
The next night he didn't show up for dinner, so the nine sat down and ate
without him. But when it came time to pay the bill, they discovered, a
little late what was very important. They were FIFTY-TWO DOLLARS short of
paying the bill! Imagine that! And that, boys and girls, journalists and
college instructors, is how the tax system works. The people who pay the
highest taxes get the most benefit from a tax reduction. Tax them too much,
attack them for being wealthy, and they just may not show up at the table
anymore. Where would that leave the rest? Unfortunately, most taxing
authorities anywhere cannot seem to grasp this rather straight-forward
logic!